Meaning of commerce.

Commerce is one component of business. It is concerned with the distribution and marketing activities.
Exchange of goods and services is the essence of commerce. It is concerned with the transfer of
ownership of goods and services.

Meaning of business.

Business is concerned with the creation of utilities and distribution of such utilities for the satisfaction of
human wants and also securing some economic gains. (I.e. profit). The essence of business is buying and
selling. It means production and marketing of goods and services for a profit.

Definition of business.

According to Keith Davis, business may be defined as “an organized effort by individuals to produce
goods and services, to sell these goods and services in a market place and to reap some reward for this
effort”

Need of business

Regular supply of goods and services: business is needed in order to supply goods and services
required by the society regularly. It is through business that human needs are satisfied. Business
plays an important role in the satisfaction of human wants and also in promoting social welfare.
Meaningful use of natural and other resources: business activities are necessary for utilitising
natural resources purposefully. It ensures full utilization of available resources .it manufactures
and provides goods and services required by the people.
Creation of employment opportunities: business is needed as it has huge capacity to generate
employment opportunities in different areas as production, marketing, transport, insurance,
banking, and so on. A large section of the population of the world earns its regular income by
means of business.
Provision of revenue to the government : business is needed as it provides substantial revenue
to the government. It provides through taxes, duties, and fees. It acts as a major source for
meeting administrative, developmental and other needs.
Smooth and happy social life: business is needed as it touches all aspects of our personal and
social life. Thus, business is needed to make of our life rich, satisfied and happy.
Creation of rich and developed country: business is needed in order to make country rich,
developed and self-sufficient.it facilitates industrial/economic development. Due to industrial
growth, the country becomes rich and developed. It earns foreign exchange by exporting goods.
It is responsible for raising the rate of capital formation in an economy.